The Kraken cryptocurrency platform has made the strategic choice to stop its activities in Japan from January 31. However, the exchange reassures on its liquidity and also invites the customers concerned to make the withdrawals before the date mentioned.
Kraken stops operating in Japan again
It is in a difficult market context that the Kraken platform has announced the cessation of its services in Japan. Indeed, the group considers that it is not in its economic interest to continue to invest in its development on the Japanese market, and prefers to focus on other geographical sectors:
“After reviewing the current situation surrounding the Japanese market and the collapse of the global cryptocurrency market, we came to the conclusion that it would be difficult for Kraken to invest the necessary resources to further expand its business in Japan. »
It is the second time Kraken withdraws from Japan. The first time took place in April 2018 in the face of rising costs for its operations, while the platform had been established there since 2014. The exchange then returned to the Japanese market at the end of 2020.
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A withdrawal from the Japanese market in several stages
Kraken was registered with the Financial Services Agency (FSA), Japan’s financial watchdog. So it’s a recording that will end next January 31, the date on which the platform closes its local activities. Japanese customers thus have time to make their arrangements by then.
First, new deposits will be suspended from next January 9. Trading activities may still continue thereafter, but the assets in client accounts must be withdrawn before midnight February 1.
In the event that assets are still on the platform on the date mentioned, all of these assets will be converted into Japanese yen then placed in the custody of the Office of Legal Affairs, as required by law. Customers who have not made their arrangements in time will therefore have to contact the said office if they wish to recover their funds.
However, this decision to stop its operations in Japan is a strategic choice, as a result Kraken reassures on its liquidity which is in no way impacted :
“Clients are requested to transfer the crypto-assets held in the Kraken account to an external wallet [ou] to withdraw the funds to a national bank account. Kraken has sufficient liquidity to enable all clients affected by this decision to withdraw their assets quickly. »
While the bear market puts ecosystem players under pressure, we don’t know if Kraken will ever reverse his decision.
👉 On the same subject – Kraken deploys “Kraken Pro”, its advanced cryptocurrency trading tool
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Source: Kraken
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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